D1 S.A.S

D1 S.A.S. operates as a pioneering hard-discount retail chain in Colombia, a market it first entered and revolutionized in 2009. The company was established in Medellín by Chilean entrepreneur Michel Olmi, who, inspired by the success of German discounters like Aldi and Lidl, identified an opportunity in the Colombian market to provide quality products at low prices. Olmi, an engineer and mathematician who was working in investment banking in Germany, analyzed the gap between basic family basket costs and minimum wages in Latin America, concluding Colombia was the ideal location to test the hard-discount model. The first D1 store opened on October 31, 2009, and the company expanded rapidly, reaching 50 stores by the end of 2010.

The business operates on a classic hard-discount model, focusing on high-quality own-brand products, which constitute a majority of its sales. This strategy involves maintaining a limited product assortment of around 850 SKUs, ensuring high inventory turnover and operational efficiency. The model is designed to minimize costs by using small-footprint stores (average 250-300 sq meters), investing minimally in advertising, and forgoing non-essential services like parking or bagging. This lean operational structure allows D1 to offer significantly lower prices than traditional supermarkets, targeting a broad consumer base seeking value. Revenue is generated directly from the sale of these consumer goods across its extensive network of stores.

Initially launched by Koba International Group, a Panamanian entity, D1 has undergone significant ownership changes. In 2011, Valorem, the holding company of the Santo Domingo Group, began investing in the company, eventually acquiring a controlling stake of nearly 60% by 2015. This acquisition marked the departure of the founding team led by Michel Olmi. Today, D1 is majority-owned by Valorem, with other significant shareholders including the Swiss fund IHAG Holding and Canada Pension Plan Investment Board (CPP Investments). Under this new ownership, D1 has continued its aggressive expansion, becoming the company with the most points of sale in Colombia, covering over 520 municipalities with more than 2,500 stores and employing over 24,000 people.

Keywords: hard discount retailer, Colombia food retail, private label products, consumer goods, value retail, grocery chain, emerging markets retail, low-cost operations, Michel Olmi, Valorem Group, Koba International, Santo Domingo Group, high inventory turnover, FMCG Colombia, discount stores, retail expansion, Medellín startup, Latin American retail, operational efficiency, grocery market disruption